Internet based lottery redemption system and methods

ABSTRACT

A method and associated system for Internet play of an instant lottery game includes supplying instant lottery tickets for purchase by players, with each of the instant lottery tickets having a game authorization code. The winning or loosing status of the instant lottery tickets is unknown to the players at the time of purchase. Each of the instant lottery tickets is provided with a unique prize claim code separate from the game authorization code. A web site is provided wherein a player enters the game authorization code via an Internet device to initiate play of the instant lottery game. The outcome of the game is then randomly determined and presented to the player via the web site. The value of a winning outcome is credited to a running tally associated with the lottery ticket and, upon the player cashing out to end the lottery game, a monetary value is assigned for the running tally associated with the unique prize claim code. The prize claim codes are stored and at defined periodic intervals, the prize claim codes are transferred to a lottery system central computer. For redemption of an instant lottery ticket, the player presents the prize claim code to a lottery redemption location wherein the presented prize claim code is verified with data from the transferred prize claim codes to determine a payout to the player for the lottery ticket.

PRIORITY CLAIM

The present application claims priority to U.S. Provisional ApplicationSer. Nos. 61/280,330 filed on Nov. 2, 2009, and 61/340,807 filed on Mar.23, 2010.

FIELD OF THE INVENTION

The present application proposes a methodology and associated system forselling and redeeming lottery games over the Internet. The proposedmethodology and system allow for enhanced gaming experiences of bothdeterministic outcome and dynamically determined outcome Internet-basedgames. Additionally, this application provides a secure methodology forallowing tickets to be sold and redeemed in conventional lotteryretailer outlets that enable gaming over the Internet in compliance withlaws concerning age and legal jurisdiction authentication.

BACKGROUND

Lottery games have become a time honored method of raising revenue forstate and federal governments the world over. Traditional scratch-offand on-line games have evolved over decades and supply increasingrevenue year after year. However, after decades of growth, the salescurves associated with traditional games seem to be flattening out.Consequently, both lotteries and their service providers (e.g.,Scientific Games, GTech, Pollard Banknote, Infralot, etc.) are presentlysearching for new forms of gaming.

To date there has been much speculation about providing various lotteryproducts to the consumer over the Internet. The benefits are obvious;greater accessibility and a richer gaming environment for the playerwill result in enhanced sales. However, there are various United Statesfederal laws that bring into question the legality of such anenterprise. Specifically, laws that require proof that the Internetgaming experience took place within the jurisdiction of the lotteryauthority (e.g., a given state's boundaries) and require that theconsumer of the lottery Internet product is of legal age. These areparticularly challenging obstacles, given that a violation of eitherrequirement (i.e., location or age authentication) could result infelony charges against the institution running the Internet lotteryoperation.

Additionally, any attempt at implementing a new legal (i.e., lotterybased) Internet gaming product invariably involves developing new costlyinfrastructures for sales and redemption as well as the gamingenvironment itself. It is therefore highly desirable to develop a systemfor authenticating age and location for Internet gaming as well asensuring that said system could be readily integrated into an existinglottery's infrastructure.

Partially because of these legal hurdles and auditing requirements, anyproposed Internet lottery game to date has been of a deterministicnature—i.e., the outcome of the game is determined before it starts.While the Internet does offer the ability to enhance the deterministicgaming experience, the very nature of deterministic games limits theenhanced experience and ultimately causes the games to seem stale toexperienced consumers. The lack of game-dynamic-player-input ultimatelylimits the Internet gaming experience. Thus, it is highly desirable toalso develop an Internet gaming platform that not only conforms to legalrequirements but also allows for dynamic play (e.g., a player is allowedto vary his bet and cash out at any time) resulting in a more fulfillingInternet gaming experience.

SUMMARY

Objects and advantages of the invention will be set forth in part in thefollowing description, or may be obvious from the description, or may belearned through practice of the invention.

Described are a number of mechanisms that provide practical details forreliable deterministic and dynamic Internet gaming. Various means arealso described for integrating Internet gaming into a lottery's existinglogistical sales and redemption structure as well as age and locationauthentication based on these mechanisms.

In a particular embodiment, a method for Internet play of an instantlottery game includes supplying instant lottery tickets for purchase byplayers. Each instant lottery ticket has a game authorization code. Thewinning or loosing status of the instant lottery tickets are unknown tothe players at the time of purchase. The method includes providing eachof the instant lottery tickets offered for sale with a unique prizeclaim code that is separate from the game authorization code. A web siteis provided wherein a player enters the game authorization code via anInternet device to initiate play of the instant lottery game. Once theinstant lottery game is initiated by the player, the outcome of the gameis randomly determined and presented to the player via the web site. Thevalue of a winning outcome is credited to a running tally associatedwith the lottery ticket and, upon the player cashing out to end thelottery game, a monetary value is assigned for the running tally to theunique prize claim code for the lottery ticket. The prize claim code isstored and at defined periodic intervals, the prize claim codes havingmonetary values assigned thereto are transferred to a lottery systemcentral computer. For redemption of the instant lottery ticket, theplayer presents the prize claim code to a lottery redemption locationwherein the presented prize claim code is verified with data from thetransferred prize claim codes to determine a payout to the player forthe lottery ticket.

The Internet functionalities may be implemented in various ways. Forexample, in one embodiment, an Internet game server may be configured incommunication with the lottery system central computer. In anotherembodiment, the Internet functionalities are implemented with thelottery system central computer that also functions as an Internet gameserver.

The lottery system central computer may also be configured forconducting an on-line draw lottery game wherein on-line lottery ticketsare sold to players at retail locations, with the instant lotterytickets being offered to players at the same retail establishments andbeing redeemed at redemption locations for the on-line lottery tickets.In this embodiment, the prize claim codes having a monetary valueassigned thereto are stored in a file that is transferred to the lotterysystem central computer at the defined periodic interval and loaded intoa lottery validation system. The files for winning on-line lotterytickets are also loaded into the lottery validation system. The playersmay be notified of a time after the loading into the lottery validationsystem when they can redeem their instant lottery tickets.

In certain embodiments, the instant lottery tickets are printedreal-time for the player at the time of purchase by lottery terminalsthat also print on-line lottery tickets. The method may includegenerating an ongoing database of the purchased instant lottery ticketsthat is used to verify the game authorization codes subsequently enteredby players for Internet play of the instant lottery tickets. In anotherembodiment, the instant lottery tickets are pre-printed, with the methodincluding generating a database of for all of the pre-printed instantlottery tickets offered for sale that is used to verify the gameauthorization codes entered by players for Internet play of the instantlottery tickets.

The method may further include the step of verifying the player'sgeographic location when the player accesses the web site for Internetplay of the instant lottery game.

The present invention also encompasses a various embodiments of alottery system for conducting Internet play of an instant lottery gamein accordance with the methods discussed above.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a front plan view of a first representative example of alottery-type instant ticket used to deposit funds for Internet gaming;

FIG. 2 is a front plan view of the first representative example of thelottery-type instant ticket used to deposit funds for Internet gaming ofFIG. 1 showing the scratch off coatings removed;

FIG. 3 is a front plan view of a lottery sponsored web page that allowsfor the Internet funds of FIG. 1 and FIG. 2 to be used to play a virtualslot-type machine on the Internet;

FIG. 4 is a view of the back of the lottery lottery-type instant ticketused to deposit funds for Internet gaming of FIGS. 1-2;

FIG. 5 is a flow chart illustrating a first method of producing,distributing, and selling lottery-type instant ticket used to depositfunds for Internet gaming of FIGS. 1-2 and 4;

FIG. 6 is a flow chart illustrating details of the operation of theserver portion for Internet gaming of FIG. 5;

FIG. 7 is a flow chart of a second method of producing, distributing,and selling lottery-type tickets used to deposit funds for Internetgaming of FIG. 3;

FIG. 8 is a flow chart of a third method of producing, distributing, andselling lottery-type tickets used to deposit funds for Internet gamingonly in this embodiment, the outcome of the game is predetermined by theGame Activation Code (GAC); and,

FIG. 9 is a representative example of many of the possible layers of amulti-tiered age and location identification and authenticationalgorithm;

FIG. 10 is a flow chart illustrating several methods that may be used toauthenticate a consumer's identity and, by inference, his age asindicated by FIG. 9;

FIG. 11 is a flow chart illustrating a possible method of sorting andflagging IP addresses of Internet devices based upon listings maintainedby the lottery or third parties and as indicated in FIG. 9;

FIG. 12 is a flow chart illustrating a possible method of approving IPaddress locations based upon ping times as also indicated in FIG. 9;

FIG. 13 is a flow chart illustrating possible methods of geolocatingInternet devices based upon signals available from GPS and/or Cell towersignals as also indicated by FIG. 9;

FIG. 13A is a flow chart illustrating in more detail certain functionsof the flow chart of FIG. 13;

FIG. 14 is a flow chart illustrating a possible method of geolocatingInternet devices based upon a WiFi Positioning System as also indicatedby FIG. 9;

FIG. 15 is a flow chart illustrating a possible method of geolocatingInternet devices based upon a landline, Voice Over IP (VoIP), or Celltelephone system as also indicated by FIG. 9; and

FIG. 16 is a flow chart illustrating a possible method of geolocatingone Internet device based upon a Confirmation Code generated by a secondInternet device without sending precise locational information as alsoindicated by FIG. 9.

DETAILED DESCRIPTION

Reference will now be made in detail to embodiments of the invention,one or more examples of which are illustrated in the figures. Eachexample is provided by way of explanation of the invention, and notmeant as a limitation of the invention. For example, featuresillustrated or described as part of one embodiment can be used withanother embodiment to yield a third embodiment. It is intended that thepresent invention include these and other modifications and variations.

FIGS. 1 and 2 depict a first representative example of Internet tickets100, 105, and 110 having two components: a prepaid money amount 115,120, and 125 and a removable Scratch-Off-Coating (SOC) 130 lotteryinstant ticket portion obscuring GACs until the ticket(s) are purchasedby a consumer. These instant lottery tickets 100, 105, and 110 areprovided as one embodiment of a suitable lottery ticket, however itshould be understood that other lottery-type tickets, for example,on-line tickets printed in real time, can be used and may be moredesirable in some applications. In this example, the tickets 100, 105,and 110 resemble traditional instant-win tickets and can be purchased inthe normal manner at a lottery retailer. After purchase, the consumerremoves the Scratch-Off-Coating (SOC) 130 to reveal the, previouslyhidden, GAC indicia data 135—FIG. 2. The consumer then uses hiscomputer, smart telephone, or other Internet Device (IDE) to visit thespecified web site 140 (155 in the instructions on the back of theticket as shown in FIG. 4) via Internet browser or special applicationand enter the GAC indicia data 135.

In this embodiment, the web site would validate the submitted GAC anddetermine the location of the IDE and, assuming the device is within thelottery's jurisdiction, would enable an Internet game in which theoutcome of the game is determined by an on-line pseudorandom generatorand not by the GAC indicia data 135. As shown in FIG. 3 one possibleexample of an on-line pseudorandom generator game, is an Internetslot-machine type game (web page 200) wherein the consumer enters theGAC indicia data 135 by typing or other means into a GAME CODE entrywindow 202. After the code has been correctly entered, the informationwould be sent to the lottery by clicking or otherwise actuating the PLAYvirtual button 201. After receiving the GAC, the lottery computer would,by various methods, validate the code and determine the location of theconsumer's IDE and, if several criteria are met, the total number ofCREDITS would appear in a display 204. The total number of CREDITS 204being derived from the price (e.g., 115, 120, or 125) of the ticketpurchased divided by the cost per point (e.g., 5¢ as shown in 209). Theconsumer would now be allowed to start playing the game.

The CASH OUT virtual button 203 is present because this example reflectsan embodiment of an Internet game wherein the outcome is determined byan on-line pseudorandom generator as the consumer plays the game and notpredetermined by the ticket code 135. Thus, the consumer has the optionto actuate the CASH OUT virtual button 203 at any time, with the numberof credits present 204 when the consumer actuates the CASH OUT virtualbutton 203 reflecting the amount of money he has won.

To play the game, in this example, the consumer would select the desiredpoints per BET 206 via the BET ONE 205 or BET MAX 207 virtual buttons.The BET MAX 207 virtual button differs from the BET ONE 205 in thatactuating the BET MAX 207 virtual button typically will bet the maximumnumber of points and the maximum number of lines (consistent with theremaining Credits 204) and spin the reels. If the consumer chooses theBET ONE button, he can select the desired points per bet in incrementsof one for each depression of the button. He would then select thenumber of lines on the virtual slot-type machine 212 he would like toplay per spin by actuating one or more of the virtual line check marks214. As shown in FIG. 3 the user interface could highlight the selectedline(s) 214 on the virtual slot-type machine (e.g., by adding abackground color to the entire line) to provide additional visualfeedback to the consumer that multiple lines have (or have not) beenselected by the virtual row check marks 214. Additional visual feedback213 can also be provided by explicitly displaying the total number oflines selected resulting in the total amount wagered per spin (4 pointsper spin in this example 213). In addition to the previously discussedvisual feedback indicators, a SPINS REMAINING 210 counter could beavailable, providing an indication of how many spins (plays) remainbased upon the total number of CREDITS 204 and the POINTS PER SPIN 213currently selected. Once the correct wager is programmed, the consumerwould actuate the virtual SPIN “lever” 211. The virtual slot-machine 212would spin its virtual reels and eventually stop with winning or losingpatterns displayed as identified by a prize table display 208. Theconsumer could continue to play the Internet game until he elects toCASH OUT 203 or no longer has any CREDIT showing in the display 204.

Assuming CREDITS 204 remain and the consumer actuates the CASH OUTvirtual button 203, there are numerous methodologies available for theconsumer to receive his winnings from the lottery. For example, theconsumer could request a check, or direct deposit to a specifiedaccount, or debit card account, or request a CREDIT transfer to anothergame directly through the Internet interface 200. Alternatively, theInternet interface 200 could allow the consumer to print a ticket on alocal printer that would include a unique redemption code identifiableby any of the lottery's terminals available throughout its jurisdiction.Another alternative would be for the standard lottery-type instantticket inventory number 145 (FIG. 4) to be used as the code to allowredemption at a lottery retailer. However, this example has thedisadvantage that existing lottery redemption systems, for securityreasons, are designed to greatly restrict or forbid any changes in theinstant ticket database after the tickets are placed on sale—especiallyprize values. A better alternative for the embodiment of the game beingdiscussed (i.e., the outcome is determined by an on-line pseudorandomgenerator as the consumer plays the game) is to add a second PRIZE CLAIMcode 150 to the lottery-type instant ticket in addition to the standardinventory number 145. This PRIZE CLAIM code 150 could be embodied as abarcode and human readable code as shown in FIG. 4 and as is obvious toanyone skilled in the art, the PRIZE CLAIM code 150 could be embodied byother means (e.g., magnetic stripe, OCR, star code, etc).

The unique PRIZE CLAIM code 150 has the advantage of being readilyadaptable to existing lottery redemption systems. For example, in onepossible embodiment the unique PRIZE CLAIM code 150 could emulate thestructure of the lottery's existing on-line ticket (e.g., Power Ball,Pick 3, Pick 4, etc.) data structure. Since on-line tickets typicallyare issued in real-time as a wager is made at a lottery terminal, theirassociated unique serial number data structure functions only toreference the wager for a future drawing. When the future drawingoccurs, all of the previous wagers stored in the on-line database arescanned to determine the winners. After the post-drawing scan iscompleted, winning on-line ticket serial numbers are automaticallycredited with the correct winning amounts. Thus, by emulating thestructure of the lottery's existing on-line ticket data structure in anInternet ticket unique PRIZE CLAIM code 150, the Internet tickets 100,105, and 110 could be readily sold without allowing any redemption untilthe game is played on the Internet. The existing lottery on-line systemwould readily accommodate this scenario by initially logging all PRIZECLAIM codes 150 on all tickets for a future drawing. When the consumeractuates the CASH OUT virtual button 203 and any CREDITS 204 remain, thesystem will automatically calculate the cash equivalent and log thecredit to the associated PRIZE CLAIM code 150 in a drawing winners'file. Periodically, say once every twenty-four hours, the drawing winnerfile would be transferred from the web servers and loaded onto thelottery's existing validation system. Once loaded, the lotteryvalidation system would then automatically instruct a retailer to paythe consumer the amount credited when he actuated the CASH OUT virtualbutton 203. To assist in database management, the PRIZE CLAIM code 150can be algorithmically linked to the GAC indicia data 135 (e.g., keyedhash, indicia data 135 is a cipher text version of PRIZE CLAIM code 150,etc.) so long as the, hidden until purchased, indicia data 135 cannot bededuced from the, readily displayed, PRIZE CLAIM code 150.Alternatively, the PRIZE CLAIM code 150 and indicia data 135 could betwo algorithmically unrelated blocks of data only linked by a securedatabase. Obviously, in this embodiment where the PRIZE CLAIM code 150is linked to a drawing, there would be some notice given to the consumerthat “Winning tickets can be redeemed twenty-four hours after cashingout” or words to the same effect.

FIG. 5 illustrates a first method of producing and selling the Internettickets of the type 100, 105, 110 and associated Internet game 200. Inthis case it is contemplated that the Internet tickets would bedistributed within an existing distribution network already in place forinstant lottery games and the tickets could be redeemed with theexisting system (301 in FIG. 5). However, in this case, since theoutcome of the Internet game 200 is not predetermined, there can remainthe added tasks of transferring winning amounts to the drawing winnerdatabase when the consumer actuates the CASH OUT virtual button 203 withCREDITS 204 remaining.

Beginning at block 300 on the flowchart illustrated in FIG. 5, theinstitution responsible for printing a lottery's instant ticketsproduces a run of Internet tickets of the type 100, 105, 110 to fund theInternet game 200. As is normal in this type of production process, theproduced instant tickets are delivered to the lottery and placed on saleat the lottery's retailers 304. As is also routine in instant ticketproduction, a digital file representing the shipping and validationinformation for the entire instant ticket run is delivered to thelottery's central site system 303. Under normal operations this filewould be used for both inventory control as well as validation, howeverin this embodiment the tickets of the type 100, 105, 110 simply fund anInternet game 200 and therefore the winning or losing status of a giventicket is not known at the time of production or sale. Therefore, theinstant ticket database will be utilized in this embodiment primarilyfor logistical control and accumulating sales data 305.

As shown in the flowchart illustrated in FIG. 5, there is one moredeliverable 302 from the instant ticket printer, in this embodiment,that is normally not required for instant tickets. This On-Line DrawingDatabase 302 contains all of the PRIZE CLAIM codes 150 from all of thetickets of the type 100, 105, 110 produced. In theory, the delivery ofthis on-line database 302 to the lottery's existing central site system301 is optional, since all of the on-line serial numbers delivered willbe for a virtual drawing at a future date with no immediate value.However, most lottery redemption systems require that a file exists forall sold on-line drawing serial numbers before a drawing can occur. Thisbeing the case, the delivered on-line database file 302 would functionas the sold on-line drawing tickets, even though the instant tickets ofthe type 100, 105, 110 are put on sale (i.e., not yet sold) at the timethe file 302 is delivered.

A related or identical copy of the same on-line database is alsodelivered 302′ to the web server running the Internet game 200. Thiscopy of the database is used by the server to: determine theauthenticity of received GAC indicia data 135, ensure that no GACindicia data 135 is credited twice, and to generate the correct PRIZECLAIM codes 150 for the tickets associated with winning games (i.e.,where the consumer actuates the CASH OUT virtual button 203 with CREDITS204 remaining) in the Win File database 308. It should be noted, thatthe related or identical copy of the on-line database 302′ could besimply replaced with the on-line database 302 resident at the lottery'scentral site 301 with all Internet gaming transactions being conductedby the lottery's central site system. Indeed, in new applications thisembodiment may be more desirable, however for adding Internet gaming toexisting lottery central site systems 301 that were not originallydesigned to accommodate this type of interface, it may be desirable toimplement the Internet functionality on separate servers for ease ofintegration. Obviously, these separate servers could be physicallylocated at the same location as the existing lottery central site system301.

Next in this example, the consumer purchases a ticket 306 and visits thespecified Internet gaming site 200 via web browser, specificapplication, or other means. When the consumer enters the GAC indiciadata 135 by typing or other means into a GAME CODE entry window 202 andactuates the PLAY button 201, the entered data is transferred to theserver containing the on-line database 302′ where it is bothauthenticated and checked to ensure that the same GAC indicia data 135has not been used before. If the GAC indicia data 135 is incorrect orhas been used before the appropriate error message will be returned tothe consumer and game play will not be allowed. However, if the GACindicia data 135 is authentic and unused, the lottery server will thenattempt to validate that the consumer is physically located within thelottery's jurisdiction at a block 306′. Assuming the consumer's locationis confirmed, he will be allowed to play the Internet game 200 until heexhausts all credits or actuates the CASH OUT virtual button 203 withCREDITS 204 remaining 307. In the latter case, the number of creditsremaining will be transformed into a cash equivalent and logged with theconsumer's ticket's PRIZE CLAIM code 150 on the Win File database 308.After completing the game, the consumer will receive a notice indicatingwhen (if not immediately) he can cash his ticket at a lottery retailer.

Virtual drawings will be periodically conducted 310 at the lotterycentral site 301 for the Internet game 200. The time period for thevirtual drawing is flexible and could be every twenty-four hours, oreven as often as every minute. The purpose of the virtual drawing is toload the winning tickets PRIZE CLAIM codes 150 onto the lottery'scentral site system 301 so that the existing infrastructure of retailerscan cash tickets that became winners after Internet game play. Byconducting a virtual drawing for these winning tickets as they arecreated, the existing lottery central site system 301, on-line drawingsoftware accepts the newly generated winners without significantmodification and generates the appropriate Drawing Database of Winners311. Winning PRIZE CLAIM codes 150 from previous drawings can simply berolled over into the latest Drawing Database of Winners 311 with the oldfile being deleted or modified depending on the nuances of the lottery'scentral site software system 301.

As soon as the consumer has waited the predefined time period (if any)309 he can cash his ticket (assuming it was determined to be a winner byInternet game play). To cash his ticket, the consumer simply goes to anylottery retailer who then scans the ticket's PRIZE CLAIM code 150 ontheir lottery terminal 312. The authorization to pay the consumer wouldthen be given in a similar manner to any on-line (i.e., drawing) winningticket (311 and 312) with the winning ticket being logged at the centralsite as paid 314 and the consumer receiving payment 313.

The previously described system can be completely integrated into theexisting lottery's system 301 or set-up with different components forthe Internet gaming portion. In the latter case, the Internet portioncan even be operated by a different entity than the lottery's centralsite 301. This separation of functionality has the potential to bothreduce liability and enhance security. In either case, it is essentialthat particular attention to the security of the Internet game portion200 be applied since the game's outcome is not predetermined. Asillustrated in FIG. 6, all of the Internet game 200 logical componentsassociated with the outcome of the game (other than the decision when toCASH OUT 361) are located on the Internet Game Server 351 and not theconsumer's IDE 350. This separation is essential because various webbrowser applications (e.g., Java) can be easily decompiled at theconsumer's device and are susceptible to various forms of Spoofingattacks. Even if the consumer's interface is supplied by a customapplication (e.g., iPhone app), the fact that it runs on a platformoutside of the control of the lottery makes it susceptible to fraudulentattacks. It is therefore, undesirable to log accounting information anddecide if a particular play (spin) is a winner on the Consumer IDE 350.

In the method of FIG. 6, the overall system functionality anddistribution is a subset to the embodiment of FIG. 5. Thus, thisembodiment can generally be the same as the previous embodiment,providing more detail on the interaction between the Consumer's IDE 350and the Internet Game Server 351. These details start on FIG. 6 withblock 352 where the consumer purchases a ticket and goes to theassociated web site. The first time the Consumer IDE 350 visits the website operated by the Internet Game Servers 351, the IDE may need todownload 353 a specific application compiled for his device or a webbased (e.g., Java) application that runs on a hardware independentplatform. Once the required application is downloaded, the consumerwould be prompted to enter the GAC indicia data 135 by typing or othermeans into a GAME CODE entry window 202, which was created by thedownloaded application, and then passed by the application to theOn-Line Game Server 354. Assuming the GAC indicia data 135 is correctand has not been used before and the consumer's location is verified tobe within the lottery's jurisdiction, the On-Line Game Server 354 willprovide the Consumer's IDE 350 application with the correct amount ofcredits to display (based on the GAC indicia data 135) and willauthorize it to proceed with play of the Internet game 200 by passing anunique Session IDentification (SID) code back to the application 353.This same SID code and total credits available are also passed to thelogic that calculates a play's (spin's) outcome 355 resident on theInternet Game Server 351.

At this point, the consumer makes a wager and executes a play (spin) 358on the Internet game 200. The details of this wager are then transmittedto the Spin Outcome & Running Tally module 355. Module 355 thencalculates the outcome for the first play (spin) that has not yetoccurred on the Consumer Game application 358. The module 355 calculatesthe outcome for the first play by using a seed from a pseudo-RandomNumber Generator (RNG) 356. Depending on the outcome of the play, theSpin Outcome & Running Tally module 355 will either credit or debit therunning credit total for the consumer's game based on the wager that hemade and determine if enough credits remain for another play 357. Theoutcome of the play is then passed from the Spin Outcome & Running Tallymodule 355 to the Consumer Game application 358 along with the creditsremaining after the play. When the Consumer Game application 358receives this information it will animate play (e.g., spin the reels 212on the Internet game 200 display) with the play concluding as instructedby the Spin Outcome & Running Tally module 355 with the CREDIT window204 incrementing or decrementing depending on the play's (spin's)outcome. If no credits remain 359, the Consumer Game application 358will end the game 360. Otherwise, the application 358/359 will allow theconsumer to either make another wager and play or to CASH OUT 203 andend the game with winnings 361. If the consumer elects to CASH OUT 203,the application will transmit this decision to the game server 351 andthe monetary equivalent of credits will be added to the associatedconsumer's ticket's PRIZE CLAIM code 150 on the Win File 362 at theserver. As previously mentioned, in this embodiment, the informationfrom the Win File 362 will eventually be transferred to the lottery'scentral site system 301 so that the ticket can be redeemed at anyretailer location by the consumer 364.

There are many possible ways of configuring the Spin Outcome & RunningTally module 355 and RNG module 356 of FIG. 6. One possibility is foreach play (spin) the Outcome module 355 simply queries the RNG module356 for the latest output. For any of these applications, the RNG 356should be either a True hardware Random Number Generator (TRNG) or asoftware pseudo-RNG like a Linear Congruential Generator (LCG) orpreferably a Mersenne Twister that receives a starting seed from realworld data (e.g., a hash of the time the On-Line Game Server 354 wasfirst contacted combined with the GAC indicia data 135 received whencontacted). However, if a TRNG is selected, care should be taken toprovide cryptographic authentication that the seed received from anexternal TRNG truly was created by that device. It is arguable, that thesoftware RNG is preferable for this application if its input seeds aredetermined by an auditable sequence of events (e.g., hash chain ofprevious seeds coupled with a new seed). In either case, it may bedesirable to utilize only one random seed per GAC indicia data 135 game,thereby enabling a better audit trail.

No matter what methodology is selected for the Spin Outcome & RunningTally module 355 and RNG module 356 of FIG. 6, it is essential that allcredit bets, wins, and losses as well as all spin results be calculatedand recorded on the Internet Game Server 351. These recordedtransactions as well as the outcome of the RNG module 356 willconstitute an audit trail that can be used to resolve any claims by theconsumer that his IDE 350 informed him that he was a big winner when histicket redeemed for a much smaller value (if any). To secure this audittrail it may be desirable to maintain a secure hash chain of alltransactions. By maintaining all calculations at the Internet GameServer 351, the possibilities of the IDE 350 erroneously displaying anincorrect win or total are greatly minimized. Wording can also be addedto the back 155 of the ticket of type 100, 105, 110 (FIG. 4) statingthat a review of the audit file is the final arbitrator in all disputes.

As will be appreciated by anyone skilled in the art, the aforementionedis simply one embodiment of a multiplicity of possible variations. Forexample, as is previously discussed, this embodiment can also be fundedwith on-line tickets printed real-time at the time of purchase. Indeedthis embodiment does result in a simpler system as shown in FIG. 7,albeit with modifications to the existing lottery central site 301 toaccommodate generation of GACs tied to monetary values as well as lesstangible advertising and the virtual currency metaphor inherent with theinstant scratch-off Internet tickets of type 100, 105, and 110.

FIG. 7 illustrates a second method of producing and selling lottery-typetickets used to deposit funds for Internet gaming of FIG. 3 type 200. Inthis case it is contemplated that the ticket funding the Internet gamewould be sold within an existing distribution on-line network already inplace for drawing-based-games (e.g., Power Ball, Pick 3, Pick 4, etc.).Thus, in this embodiment the consumer would purchase a ticket from theretailer with the ticket and associated GAC and prize claim code (ticketserial number) printed real-time at the time of purchase 315. When thepurchase is made, the existing lottery central site system 301 On-LineDrawing Database 317 would be updated with the purchased ticket serialnumber (prize claim code) awaiting a drawing. Also, as before, a relatedor identical copy of the same on-line database is also delivered 317′ tothe web server running the Internet game 200. Again, this copy of thedatabase is used by the server to: determine the authenticity ofreceived GAC, ensure that no GAC is credited twice, and to generate thecorrect prize claim codes for the tickets associated with winning games(i.e., where the consumer actuates the CASH OUT virtual button 203 withCREDITS 204 remaining) in the Win File database 308. As before, theconsumer would then take the purchased ticket and go to the directed website to enter the GAC printed on the ticket 316. (In this embodimentthere is no need to hide the GAC because the on-line ticket is onlyprinted after purchase.) The remainder of this second method embodimentis identical to the first embodiment and will not be repeated here forsake of brevity.

Yet another possible embodiment, where the instant scratch-off Internettickets of type 100, 105, and 110 result in a predetermined gameoutcome, is shown in FIG. 8. This embodiment has the advantage of asimpler system with virtually no modifications to the existing lotterycentral site 301. However, this embodiment has the disadvantage ofdeterministic outcome (i.e., no CASH OUT virtual button 203 or option)which, from a consumer's perspective, can create the perception of lesscontrol and consequently lower perceived chance of winning.

In this method, illustrated in the flow chart of FIG. 8, Internettickets of type 100, 105, and 110 would be produced as before 325.However, in this embodiment there is no need for a separate PRIZE CLAIMcode 150 on the back of the ticket (FIG. 4) or an associated On-LineDrawing Database of type 302 and 302′ (FIG. 5). Rather, this embodimentonly requires that a standard Instant Ticket Database 303 be maintainedon the lottery central site system 301 as well as (optionally) a relatedor identical Instant Ticket Database 303′ on the Internet game server.

Returning to the physical placement of tickets of the type 100, 105, 110on sale at block 304, as before, the consumer purchases a ticket 306 andvisits the specified Internet gaming site via web browser, specificapplication, or other means. When the consumer enters the GAC indiciadata 135 by typing or other means into a GAME CODE entry window, theentered data is transferred to the server containing the Instant TicketDatabase 303′ where it is both authenticated and checked to ensure thatthe same GAC indicia data 135 has not been used before. If the GACindicia data 135 is incorrect or has been used before, the appropriateerror message will be returned to the consumer and game play will not beallowed. However, if the GAC indicia data 135 is authentic and unused,and the consumer's location is verified 306′, the consumer will beallowed to play the Internet game 326. Again, in this embodiment, theoutcome of the Internet game is predetermined by the ticket GAC indiciadata 135 so the consumer will be required to play a specified number ofrounds or complete a given number of tasks depending on how the Internetgame is designed. When the game is concluded, the consumer can then takethe ticket to the retailer who will scan the instant ticket barcode 327to pass the data to the lottery's central site instant ticket validationsystem for payment authorization 328. If the ticket is authentic and thesystem returns a payment authorization, the consumer is paid 329 withthe sales and redemption data both being recorded on the lottery'sinstant ticket database 330.

It should be noted, that an optional feature of this embodiment wouldallow for individual ticket activation when the consumer logs onto theweb site and plays the game 326. This individual ticket activation wouldhave the benefit of stopping a consumer from simply purchasing theticket and asking the retailer if it was a winner without playing thegame thereby ensuring that the consumer experienced the enhancedInternet gaming experience. This option would have the additionaladvantage that retailers would spend less time validating losingtickets. Individual ticket activation could be accommodated withexisting lottery central site systems 301 by simply reducing the packsize to one ticket.

While the previously described embodiments explain mechanisms thatprovide various means for integrating Internet based games into alottery's existing logistical sales and redemption structure, no mentionof practical details for reliable Internet age and locationidentification and authentication has been described. Age and locationidentification and authentication are best served by layering two ormore methodologies each having very low error rates. Layering allows theage/location system to be both flexible and effective, while minimizingthe number of false rejects. For example, let's assume a location systemonly employs one layer, but that layer is 99.9% accurate. That is, ifsomeone is attempting to use the system outside of the lottery'sjurisdiction, there is a 1-in-1000 chance that the system will fail todetect and block the errant user. In other words the false accept andfalse reject failure rates are both 0.1%. Now, let's assume that only 1in 10 million users of an Internet gaming site is attempting to play agame outside of the lottery's jurisdiction. Despite the high (99.9%)level of accuracy, because of the small percentage of users attemptingto defraud the system, this hypothetical system will generate 10,000false rejects for every real fraud attempt. This kind of usage-failurerate would make the hypothetical system impractical—i.e., by the time areal attempt to defraud the system occurs, legitimate users will havestopped using the system because it falsely blocked them too many timesfrom playing a game. To prevent this problem, the lottery might beforced to greatly reduce the detection logic threshold criteria or turnoff the logic completely. However, as shown in FIG. 9, with a layeringarchitecture based on a foundation of low error rate methods, we cangradually build-up a reliable system that (for most practical purposes)ensures that the lottery's age and location identification andauthentication requirements are met while virtually eliminating falserejects. However, as is obvious to anyone skilled in the art, thevarious layers described below are examples only and in some instances,one or more layer(s) can be deleted or changed while still maintainingthe high level of age and location authentication. For example, in boththe age and location authentication layering examples the first layer(i.e., purchasing a physical lottery ticket from a licensed retailer)may be eliminated in an attempt to increase sales by allowing purchasesdirectly over the Internet.

The first level of age and location authentication can be imposed by theprocess of purchasing and redeeming a lottery ticket at an existingretail location 400. Indeed this, time honored methodology has been inplace with modern lotteries for over three decades without anysignificant legal challenges. Thus, the purchase and redemption oftickets, as described in the previous embodiments, provides the sameassurance that a consumer is of legal age and within a lottery'sjurisdiction as in the past. However, since the new element “Internetgame play” has been added, it may also be necessary to add requirementsfor age and location authentication that surpass or replace what hasbeen previously accepted (since the consumer must now convince acomputer that he is of legal age and in the jurisdiction). There arenumerous embodiments that can add additional layers of authenticationeither by themselves or in conjunction with each other.

Traditionally there are three ways to authenticate an individual and, byinference, his age: “by something he knows”, “by something he has”, and“by something he is” as collectively shown in FIG. 10. In other words,Internet age authentication is simply a subset of traditionalidentification and authentication of an individual and the threetraditional methods of individual authentication are therefore alsoapplicable to age authentication.

The first method employs the “something he knows” criteria. The mostobvious “something” being passwords, PIN codes, lock combinations, etc.At the time of purchase 1000 of the Internet gaming ticket, the retailercould (assuming he is convinced that the consumer is of legal age 1002)ask the consumer to enter (for example) a Personal Identification Number(PIN) into a keypad or provide the retailer a password 1008. This PIN orpassword (i.e., “Known Data”) could then be logged 1009 along with dataof the ticket sold (e.g., scan of the ticket's barcode) to the consumer1018. At this point, the consumer would be tied by “something he knows”to the ticket that enables Internet gaming. When the consumer attemptsto play an Internet game, the system could simply prompt him for the PINor password (Data) before allowing play to commence. With this level ofauthentication, the Internet gaming system would gain another layer ofassurance that the consumer attempting to play the game is the consumerwho purchased the ticket and is therefore of legal age. Also, it shouldbe noted, that this level of “something he knows” authentication doesnot necessarily require the consumer to identify himself personally tothe lottery system—i.e., the PIN or password is the only authenticationdata “known” to the lottery system. This additional layer ofauthentication incrementally reduces the possibility that anunauthorized youth below the legal age is attempting to play an Internetgame.

The second method of traditional authentication is “something he has”.The “something” might be a physical key, a membership card, a driver'slicense, or a mobile telephone card (an “Object” essentially a differentform of “Data”). At the first level, the lottery ticket providessignificant age authentication by the forced entry of the ticket GAC 135and the “Known Data”—thereby authenticating that the ticket waspurchased at an authorized lottery retailer and (presumably) with theconsumer age verified by the retailer prior to purchase 1002. Of course,the “something he has”—i.e., “Object”—item can be added 1010 (e.g., abarcode identity card, scan of drivers' license barcode), but the basicprinciple remains the same. Like the “something he knows” method, anyonecan give this “something he has” to anyone else—e.g., just as an instantlottery ticket can be passed from one person to another. Nevertheless,this second criteria serves to further reduce the likelihood of underagegame play.

While the previous methods probably provide more than sufficient ageauthentication, yet another level of age authentication would be toadopt the method “something he is”. More specifically, it is an exampleof “something that is a physical part of his body.” Ostensibly, this“something” would be biometrics data 1016 including: voice-prints,fingerprints, hand geometry, facial geometry, handwritten signatures,iris and retina scans, etc. While some of these technologies may be abit exotic and intrusive for the purposes of Internet gaming, it shouldbe noted that technological advances might make some of the “somethinghe is” age authentication far more practical as well as far moredifficult to bypass. For example, microphones, fingerprint scanners, andcameras common in laptop computers may make face and voice biometricspractical for lottery authentication. Additionally, a signature longused by credit card companies as a second layer of “something he is”authentication (the first layer being “something he has”—i.e., thecredit card), is relatively simple to collect and could be employed inthe form of mouse movement or camera image for another layer of Internetgaming age authentication.

Like the sale of conventional scratch-off instant tickets, the purchaseand redemption of tickets at an authorized lottery retailer does notnecessarily ensure that the actual gaming experience occurred within thelottery's legal jurisdiction—e.g., a consumer could purchase a ticketwithin the lottery's jurisdiction, play the game outside thejurisdiction, and return to the jurisdiction to redeem winning tickets.This portability of play is a particularly vexing problem for Internetgaming. Federal law requires that all aspects of Internet gaming occurwithin the geographical jurisdiction of the hosting lottery includingthe actual game play. While this requirement can be met on the lotterysupport side by careful placement of the Internet servers and centralsite, the nature of the Internet itself, permitting action at adistance, makes it extremely difficult to ensure that the actual gamingexperience occurs within a lottery jurisdiction.

Like age authentication, the first layer of location identification andauthentication can be provided by the sale and redemption of the ticket400 enabling play on the Internet. Since the ticket would only be soldin authorized lottery retail locations, which by definition are withinthe jurisdiction of the lottery, the sale and redemption of the ticketwould ensure, at the very least, that these two transactions areconducted within the lottery's jurisdiction. Additionally, the sheerinconvenience of a consumer having to travel to the lottery's area ofjurisdiction to purchase and redeem prizes would eliminate a largemajority of casual users outside of the lottery's jurisdiction.

Since any device connected to the Internet must have an InternetProtocol (IP) address, a second layer of location identification andauthentication could be provided by the IP address 402 of the deviceattempting to use a lottery Internet game web site. IP addresses 402consist of four integers separated by periods (also called a‘dotted-quad’) and look something like: 75.90.50.255. Since thesenumbers are usually assigned to Internet Service Providers (ISPs) withinregion-based blocks, an IP address can often be used to identify theregion or general location from which a device is connecting to theInternet. If an IP address is known to be static, associated with asmall entity or individual, and within a lottery's jurisdiction, it is areasonable assumption that the game access request and associatedactivity will be taking place within a lottery's jurisdiction and couldtherefore be permitted access to the Internet game without the need forany more authentication.

However, because there are limited numbers of IP addresses, the ISPstypically issue IP addresses in a dynamic fashion out of a “pool” of IPaddresses (Using DHCP or Dynamic Host Configuration Protocol). What thisfact means is that instead of relying on a fixed IP address, an IDE willbe assigned an IP address that is available from a subnet or “pool” thatis assigned to the network. Though, if the pool of dynamically assignedIP addresses is known to be within a lottery's jurisdiction, the systemcould grant access with a reasonable level of confidence—though not ashigh a level of confidence as the static IP address method. Referring toFIG. 11, these known static and dynamic IP addresses can comprise a“white list” 1104 used by the lottery server as an important resource inverifying the consumer's IDE. The lower confidence level associated withdynamic IP addresses results from the possibility that a portable IDE(e.g., dial-up modem on a laptop computer, mobile smart telephone,satellite transceiver, etc.) could be assigned a dynamic IP while theportable device is outside a lottery's jurisdiction—i.e., it is muchless likely that static IP addresses would be associated with portabledevices.

The converse to known good IP addresses within a lottery's jurisdictionis known bad IP addresses both inside and outside of a lottery'sjurisdiction. These IP addresses can be: geographically outside of alottery's jurisdiction, proxy servers, known Tor server addresses,America On Line (AOL), etc. By maintaining a “black list” of IPaddresses 1108, the system can immediately inform a potential user thathis location is not within the lottery's legal jurisdiction and, due tofederal law, he cannot play the lottery's Internet game from thatlocation 1114.

There is, however, another category of IP addresses that could begranted access 1106 assuming other location identification andauthentication is attained. These IP addresses would include suchentities as: AOL, IP addresses on the border of the lottery'sjurisdiction, etc. These types of IP addresses could be filed under a“gray list” designation 1110, where access might be permitted 1116assuming a more rigorous location authentication and identification testhas been successfully completed—e.g., 802.11 (Wi-Fi) authentication.

Finally, there is the possibility that the consumer is attempting toconnect to the lottery's Internet game site from a previously unknown IPaddress 1112. In this event, the unknown IP address can be treated as aspecial case, where access may be permitted 1116 assuming a morerigorous location authentication and identification test has beensuccessfully completed similar to the gray list.

Fortunately, portable devices (especially those using dial-up modems andsatellite transceivers) and remote relays (e.g., Tor) can often bedetected by simply sending a ping (i.e., series of data packets sentover the Internet to a specific device in order to generate a responsefrom that device) to the suspected portable device 404 (Layer 3, FIG.9). As shown in FIG. 12, if the IP address is a member of the white list1200, a ping is sent to the consumer's IDE 1202. If the ping responsetime is less than a specified time period “X” (e.g., 50 ms) 1208 thereis a reasonably high level of confidence that the device requestingaccess is not portable or relayed, and assuming the dynamic IP addressis within a lottery's jurisdiction (white list), the location is validand play should be permitted 1214. If the reply to the ping is greaterthan the prescribed time 1208, then additional pings 1210 can be sent tothe requesting device to determine if the initial long ping reply was ananomaly (e.g., a server was busy at the time of the first ping) ornormal for this connection. If the additional pings continue to producea response time in excess of “X” ms 1212, the device requesting Internetplay is most probably portable or a relay and additional locationauthentication may be desired 1216. This additional pinging is practicalbecause a series of pings can occur within one or two seconds andrequire no action by a human being, making repeated attempts atping-based location authentication less intrusive to the gaming processthan techniques that require human intervention.

If the IP address is a member of the Gray or Unknown list 1200, gameplay might be allowed if additional authentication is obtained 1216.

There may be circumstances in which additional authentication isnecessary or the consumer is connecting with the lottery's Internet siteby a smart mobile telephone, laptop computer, or other IDE that isequipped with some version of Radio Frequency (RF) receiver—e.g., GlobalPositioning System (GPS), Cell phone, or WiFi receiver 406 in FIG. 9. Insome cases, depending upon the model of smart phone, provider network,and service plan, GPS data may be available. The GPS can determine thelocation of the telephone or other IDE and then, with the consumer'spermission, transmit that information, or other activation information,to the lottery's Internet site. Once the location data is received, theInternet site will determine if the game play will be within its legalboundaries and allow (or forbid) game play. It should be noted, that GPSprovides accurate location authentication (i.e., 10-meter resolution) in“open sky” environments, like rural areas or highways. In urban areasand indoors, tall buildings and ceilings block GPS receiver's reception,resulting in serious performance deficiencies in time-to-first-fix,accuracy, and availability. In such situations A-GPS (Assisted-GPS),where terrestrial GPS broadcasts are used to supplement the GPS signal,can still be utilized by GPS equipped Internet devices to give locationauthentication in most cases, albeit with a slight degradation inaccuracy but not significant enough to interfere with lottery locationrequirements. As shown in FIG. 13, if the location authenticationprocess is handed off to Layer 4 a & b, 1216, and a GPS signal isavailable 1300, and the consumer's device, network, and service plansare compatible, then in one embodiment, the IDE will determine itsposition and ask permission to send the data to the lottery's web site1302. Assuming permission is granted 1304, the data is sent to thelottery computer 1305 which then determines if the consumer is locatedwithin the lottery's jurisdiction 1306 and permits 1308 or denies 1316access to the gaming website. If permission is not granted 1304—e.g.,for security or personal reasons—the consumer can be given the option tosend a Location Verification Code (LVC) instead. This LVC could bedesigned to not contain specific information about the consumer'slocation except that he was within the lottery's jurisdiction. Ofcourse, in such case, the IDE would make the decision that it waslocated within the lottery's jurisdiction using a dedicated softwarealgorithm that would be made available for download. If the consumeralso chooses to deny permission to send an LVC, the location applicationcan check for a cell tower signal 1310.

There are cases where a GPS signal is simply not available or no GPSreceiver is present on the mobile system or the consumer has refused togrant permission for the more accurate GPS data or LVC to be passed tothe lottery. In these cases, cell tower triangulation may be utilized toprovide generalized location results with an accuracy of approximately200 to 1,000 meters. This accuracy, for all but state border situations,would provide sufficient resolution for lottery location authenticationpurposes. Various service providers maintain a worldwide database ofcell tower locations. This database can be licensed for a modest fee,allowing the lottery's application on a mobile telephone to utilize thecell towers that it is detecting to determine if the consumer is withinthe lottery's legal boundaries. Note that mobile telephones can detectthe Cell ID from towers at a far greater distance than they can connectto the tower for communications. As shown in FIG. 13, the procedure issimilar to GPS location. If there is no GPS signal 1300, or the consumerhas refused permission to pass GPS data to the lottery 1304 but a Cellphone signal is available 1310, the system may be able to geo-locate bytriangulation or other means. If the IDE is localized, permission isrequested to send the data to the lottery's website 1312. If permissionis granted at 1314, locational data is sent to the lottery at 1315 andthe lottery's computer verifies the consumer is within its jurisdiction1306 and permits 1308 or denies access to the game 1316. If the consumerdenies permission to send detailed locational information 1314 (e.g.,perhaps for security or personal reasons), he can, as before, be giventhe option to send an LVC instead. If the consumer also chooses to denypermission to send an LVC, the location application can hand off to theWiFi Positioning System (WPS) layer 4 c, 1318. If cell signals are notavailable 1310, the process could also be handed off to the WPS 1318application.

The permission to send LVC information can be handled in a mannersimilar to that shown in FIG. 13A. The decision block 1304 is expandedto show that if the consumer denies permission to send detailedlocational information 1320—e.g., GPS co-ordinates or street, number,city, and state—then he is given the option to send, for example, a 3digit LVC 1322. It is clear that three digits cannot precisely locatethe consumer and, as a result, may be an acceptable alternative andallay his privacy concerns. If the LVC contains too many digits, theconsumer may think his actual location is embedded. If the consumeraccepts the LVC option 1322, the dedicated software applicationdetermines (from GPS, Cell, or WPS data) if the IDE is within thelottery's jurisdiction and creates the LVC based upon instructions fromthe lottery server—e.g., “578”=within jurisdiction any othernumber=outside jurisdiction. Of course this LVC changes on a regularbasis perhaps as a function of time, date, SID, a combination of thesedata or other criteria. The LVC is displayed to the consumer at 1324.The consumer enters the LVC via the keypad or other means at 1326 andthe data is sent to the lottery 1305. If the consumer refuses permissionto send the LVC 1322, then the decision is handed off to the Cell Towerdecision block at 1310 (as before). Of course this same procedure canalso be used in place of the Cell Permission Granted block 1314 in whichcase, if the consumer refuses permission to send the LVC, theapplication would hand off to the WPS layer 1318.

Most personal computers are not equipped with data modems and therefore,cell tower triangulation is not an option for location authenticationwith these devices. Fortunately, there is a proven system for locationauthentication that uses the 802.11 (Wi-Fi) transceiver built intovirtually every personal computer and other Internet devices on themarket today. WPS can determine location based on databases of knownWi-Fi access points by using the Media Access Control (MAC) addresses ofnearby 802.11 wireless access points. MAC addresses are a uniqueidentifier assigned to most network adapters by the manufacturer foridentification purposes. WPS typically performs best where GPS isweakest, —e.g., in urban areas and indoors—providing service similar toGPS without GPS hardware or signals. Even when consumer platforms areequipped with GPS receivers, WPS can be used to provide complementaryservices when GPS is not available or the consumer refuses permission touse GPS data. The accuracy of WPS is reported to be 20 to 30 meters,with near 100% coverage in urban areas. Like Cell ID, MAC address Wi-Fisignals can be detected for WPS at a far greater distance than they canbe used for communications. Various service providers maintain aworldwide database of Wi-Fi “access points”. This database can belicensed for a modest fee, allowing the lottery's application on amobile telephone or other IDE to utilize these access points todetermine if the consumer is within the lottery's legal boundaries. Asshown in FIG. 14, if a WPS signal is available 1400, a softwareapplication can determine the consumer's location and ask permission tosend the information to the lottery's web site 1402. If permission isgranted 1404, locational data (or LVC) is sent to the lottery's server1405. The lottery's application can determine if the consumer is locatedwithin the jurisdiction 1406 and allow 1408 or prohibit 1410 game play.As in the case of GPS and Cell ID, if the consumer does not want to senddetailed locational information at 1404, he can be given the opportunityto send an LVC instead. If WPS signals are not available or the consumerrefuses permission 1404, the location procedure can be handed off to afifth layer of authentication 1412.

Returning to the problem of providing location authentication underquestionable cases (e.g., long ping on a dynamic IP address 1212, greyor unknown lists 1200, consumer refuses permission 1404, other optionsnot available, etc.), as shown at 412 in FIG. 9, a fifth layer ofverification still remains. Assume the lottery's server encountered oneor more “permission denied” messages anywhere in the previousprocess—e.g., at 1304, 1314, 1322, 1404, or others. That means theconsumer's IDE has access to at least one RF receiver-based source oflocational data but the consumer chose to deny its use. Then at 1500,because permission was previously denied, there still remains a “landline” option for location verification. The lottery server couldautomatically generate a unique numerical code and send it to theconsumer's IDE 1504 along with a prompt requesting that the consumerdial a toll free number from a landline-based telephone and then key inthe numerical code 1506. The consumer would then call the phone numberand identify himself with the aforementioned unique code 1508. Thelottery computer would perform a reverse lookup on the Caller ID (CID)number to obtain location information 1510. As in the case of celltowers and Wi-Fi access points, various service providers maintain aworldwide database of land line telephone numbers and addresses. Thisdatabase can be licensed for a modest fee, allowing the lottery'sapplication to determine if the consumer is within the lottery's legalboundaries. If the number is determined to be within the lottery'sjurisdiction 1510, there still remains the problem of a “spoofed” CID.The lottery will place a call-back to the CID number 1512 and if thecall is not answered, the server will deny game play 1522. If the callis answered and if the consumer enters the (correct) code at 1516, gameplay is permitted. If no code or an incorrect code is entered 1516, gameplay is denied 1522. Numbers that cannot be identified (unknown) 1510are typically cell phone numbers or Voice over Internet Protocol (VoIP)numbers and in some cases could be compared to data contained within aVoIP Location Information Server (LIS) database 1520. If the VoIP orCell number can be identified, it will cause a call back 1512 to preventspoofing. Again, assuming the consumer answers the call 1514 and entersthe numeric code 1516, game play could be permitted 1518. If the VoIP orCell number cannot be confirmed 1520 or the consumer does not answer1514 or an incorrect code is entered 1516 access to the game could bedenied 1522.

For those cases in which the consumer has not denied permission toforward RF receiver data—e.g., GPS, cell tower, or WPS data 1500 it maybe that his game play IDE does not have access to RF receiver data.However, an alternate IDE may be available—e.g., the consumer may have asmart phone but does not wish to play the game on the small screendisplay—1502. In this case, a further level 5 option, the “ConfirmationCode” option may be used 1524. If another RF receiver is not available1502, a land-line option 1504 may be used.

As shown in FIG. 16, the lottery could offer a special purpose softwareapplication 1600 for a smart telephone or other IDE that would utilizethe previously described location identification mechanism (e.g., GPS,cell tower triangulation, 802.11 triangulation, etc.) to locallyauthenticate that the IDE is in the lottery's jurisdiction. In oneembodiment, the consumer would enter the SID code from the lottery'swebsite (which could be provided upon acceptance of the GAC and would bedisplayed on the gameplay IDE) into the “secondary” IDE—i.e., the devicebeing used for geolocation. The secondary IDE would then attempt todetermine its location. Upon successful—i.e., in jurisdiction—locationverification 1606, the software would cryptographically create anddisplay a Location Confirmation Code (LCC) 1608 on, for example, apop-up window. The LCC could then be keyed-in to the gameplay IDE by theconsumer 1610 when he is attempting to prove location to the lottery'sInternet game web site. The lottery's server could create an LCC usingthe same input data and software routine 1614 that could be comparedagainst the consumer's version 1616. Ideally the LCC would be a shortcryptographic code (e.g., keyed hash of current time, valid location,and SID) that would be accepted by the lottery's web site for somereasonable time after it was generated (say five minutes) and allowgaming to proceed without further interaction. Obviously, the LCC wouldbe created using a method that was sufficiently hardened to avoidhacking of codes. If the two codes match 1616, then game play can beallowed 1620 or prohibited 1618. If the secondary IDE is found to beoutside the lottery's jurisdiction 1606, then game play would be denied1618. In the example described, the consumer does not divulge his actuallocation to the lottery. However other embodiments might send moreprecise information or longer LCCs depending upon specific requirementsof the particular application.

Previous sections of this application have described geolocation forconsumer Internet Devices that are involved in the playing of anInternet-based lottery type game. However, as will be appreciated bythose skilled in the art, the same techniques may be useful for avariety of other purposes—e.g., to permit the online purchase and/orredemption of lottery tickets, geolocation of lottery terminals,geolocation of lottery ticket validation equipment, and other on-linecommerce or logistics purposes.

Although preferred embodiments of the invention have been disclosed inthe foregoing specification, it will be understood by those skilled inthe art using the teachings disclosed herein that many modifications andother embodiments are within the scope of the present invention.

What is claimed is:
 1. A computer-implemented method for Internet playof an instant lottery game utilizing an Internet game server in operablecommunication with a lottery system central computer that alsoimplements play of traditional on-line lottery tickets, comprising:supplying instant lottery tickets for purchase by players, and printingon each of the instant lottery tickets a game authorization code, thewinning or losing status of the instant lottery tickets being unknown tothe players at the time of purchase; printing on each of the instantlottery tickets offered for sale a unique prize claim code separate fromthe game authorization code; providing a web site enabled by theInternet game server wherein a player enters the game authorization codevia an Internet device to initiate play of the instant lottery game; viathe Internet game server, accessing a database of the supplied instantlottery tickets for verifying each game authorization code entered bythe player to initiate play of the instant lottery game; via theInternet game server, randomly determining the outcome of the instantlottery game initiated by the player and presenting the outcome to theplayer via the web site, and crediting the value of a winning outcome toa running tally associated with the lottery ticket; upon the playercashing out to end the lottery game, via the Internet game server,assigning a monetary value for the running tally to the unique prizeclaim code for the lottery ticket and storing the prize claim code; atdefined periodic intervals, transferring a file of accumulation of theprize claim codes having monetary values assigned thereto from theInternet game server to the lottery system central computer; loading thefile of prize claim codes into an existing on-line lottery ticketvalidation system maintained by the lottery system central computer forredemption of on-line lottery tickets; and whereby for redemption of aninstant lottery ticket, the player presents the prize claim code to alottery redemption location wherein the presented prize claim code isverified within the existing on-line lottery ticket validation systemwith data from the transferred prize claim codes to determine a payoutto the player for the lottery ticket.
 2. The method as in claim 1,wherein the Internet game server is separate from and is incommunication with the lottery system central computer.
 3. The method asin claim 1, wherein the lottery system central computer also functionsas the Internet game server.
 4. The method as in claim 1, wherein thelottery system central computer is further configured for conducting anon-line draw lottery game wherein on-line lottery tickets are sold toplayers at retail locations, the instant lottery tickets being offeredto players at the same retail locations and being redeemed at thelottery redemption locations for the on-line lottery tickets, whereineach lottery redemption location is in communication with the existingon-line lottery ticket validation system.
 5. The method as in claim 1,wherein flies for winning on-line lottery tickets are also loaded intothe lottery validation system.
 6. The method as in claim 1, furthercomprising notifying players of a time after the loading into thelottery validation system when they can redeem their instant lotterytickets.
 7. The method as in claim 4, wherein the instant lotterytickets are printed real-time for the player at the time of purchase bylottery terminals that also print the on-line lottery tickets.
 8. Themethod as in claim 1, wherein the instant lottery tickets arepre-printed.
 9. The method as in claim 1, wherein the players presenttheir originally purchased instant lottery tickets with unique prizeclaim codes for redemption.
 10. The method as in claim 1, wherein apurchase price of the instant lottery ticket dictates a number ofcredits available to the player for wagering during Internet play of theinstant lottery game.
 11. The method as in claim 1, further comprisingverifying the player's geographic location when the player accesses theweb site for Internet play of the instant lottery game.
 12. A lotterysystem for conducting Internet play of an instant lottery game, saidsystem comprising: a plurality of instant lottery tickets for purchaseby players, each of the instant lottery tickets having a gameauthorization code that entitles the player to subsequent play of aninstant lottery game via the Internet, the winning or status of theinstant lottery tickets being unknown to the players at the time ofpurchase; each of the instant lottery tickets further comprising aunique prize claim code separate from the game authorization code; anInternet game server configured for providing a web site wherein aplayer enters the game authorization code via an Internet device toinitiate play of the instant lottery game; the Internet game serverfurther configured to access a database of the supplied instant lotterytickets for verifying each game authorization code entered by the playerto initiate play of the instant lottery game; the Internet game serverfurther configured to randomly determine the outcome of the instantlottery game initiated by the player and to present the outcome to theplayer via the web site; the Internet game server further configured tomaintain a running tally for each play of the instant lottery game andto credit the value of a winning outcome to the running tally associatedwith the instant lottery ticket; upon the player cashing out to end thelottery game, the Internet game server configured to assign a monetaryvalue for the running tally to the unique prize claim code associatedwith the lottery ticket and to store the prize claim code; the Internetgame server further configured to transfer a file of the accumulation ofstored prize claim codes having monetary values assigned thereto to acentral lottery system computer at defined periodic intervals; thecentral lottery system comprising an on-line lottery ticket validationsystem, wherein the transferred file of accumulated prize claim codes isloaded into the on-line ticket validation system; and the centrallottery system computer configured to validate and redeem the instantlottery tickets presented by players for redemption within the existingon-line ticket validation system based at least in part on a comparisonof the prize claim code presented for redemption with the transferredprize claim codes.
 13. The system as in claim 12, wherein the lotterysystem central computer is further configured for conducting an on-linedraw lottery game wherein on-line lottery tickets are sold to players atretail locations, the instant lottery tickets being offered to playersat the same retail locations and being redeemed at redemption locationsfor the on-line lottery tickets, wherein each lottery redemptionlocation is in communication with the existing on-line lottery ticketvalidation system.
 14. The system as in claim 12, wherein the lotterysystem central computer is further configured for also loading files forwinning on-line lottery tickets into the lottery validation system suchthat the same validation system is used for validating and redeemingon-line and instant lottery tickets.
 15. The system as in claim 12,wherein at least one of the Internet game server or lottery systemcentral computer is configured to provide a notice to players of a timeafter loading the file into the lottery validation system when they canredeem their instant lottery tickets.
 16. The system as in claim 13,further comprising a plurality of lottery terminals at respective retaillocations configured to print the instant lottery tickets and on-linelottery tickets real-time for players.
 17. The system as in claim 12,wherein the instant lottery tickets are pre-printed.
 18. The system asin claim 12, wherein a purchase price of the instant lottery ticketdictates a number of credits available to the player for wagering duringInternet play of the instant lottery game, the Internet game serverconfigured to allow the player to selectively wager from one to all ofthe credits.
 19. The system as in claim 18, wherein the instant lotterygame implemented by the Internet game server allows for multiple playsuntil the credits available for wagering have been exhausted.